Suez Canal Offers 15% Fee Cut Amid Easing Red Sea Tensions

Egypt’s Suez Canal Authority has announced a temporary 15% reduction in transit fees for large containerships, in a bid to revive trade flows through the key waterway. The discount applies to vessels with a capacity of roughly 13,500 TEU and above and will be in effect for the next three months.

According to the Authority, the measure comes “in response to requests from containership owners and operators, and in light of recent positive developments in the security situation in the Red Sea and Bab al-Mandab Strait.”

Suez Canal revenue has dropped sharply—more than 50% over the past year—as many cargo ships, particularly container vessels, rerouted to avoid the area due to security threats. The Houthi movement in Yemen, aligned with Hamas in its conflict with Israel, has been targeting merchant ships, prompting global shippers to divert around the Cape of Good Hope.

Last week, U.S. President Donald Trump declared that the Red Sea shipping crisis, which has persisted for over 17 months, appears to be nearing resolution. He stated that the Houthis had agreed to cease their attacks on maritime traffic and that, in return, the U.S. would halt military strikes on the Iranian-backed group.

Trump's comments were echoed by Oman’s foreign minister, who has reportedly been mediating between the involved parties. However, despite these diplomatic signals, the Houthis have continued launching missiles toward Israel, prompting further military action from Tel Aviv.

Major shipping lines remain skeptical about a swift return to Red Sea routes. In recent earnings calls, many operators said the situation remains too uncertain to warrant a resumption of transits.

Maersk CEO Vincent Clerc emphasized this stance, stating last week that it would be “irresponsible” to restart operations based on a ceasefire that has yet to show lasting impact, noting the region still presents significant risks.